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Purplebricks tells Stock Exchange it does not know of any reason for share price rise

purplebricks tweet Screen Shot 2017-01-27 at 14.11.05

Shares in Purplebricks fell back on Friday afternoon after the firm issued a statement to the London Stock Exchange. This morning (Monday) it issued an additional statement.

The Friday statement, issued at 3.30pm just an hour before close of trading, said:

“Purplebricks Group plc

“Recent share price movement

“Purplebricks Group plc (AIM: PURP) (“Purplebricks”), the hybrid estate agent providing a new way to buy, sell or let property, notes the recent strong increase in the share price and confirms that it is not aware of any reason for the movement. Whilst the company has had a good start to the calendar year, the board’s expectations remain unchanged.”

This morning’s additional statement to the Stock Exchange said:

“Purplebricks Group plc (AIM: PURP) (“Purplebricks”), the hybrid estate agent providing a new way to buy, sell or let property, provides additional comment further to its announcement of 27 January 2017.

“As noted in the interim results announcement, the Company entered 2017 in its strongest positon ever with significantly increased LPE capacity, substantial growth in brand awareness, record instructions, sales and revenue together with a more advanced infrastructure.

“The Board confirms that, as expected with the start to the calendar year, the Company has seen record monthly valuations and instructions activity in January (as mentioned in a tweet by the Company on 26 January).

“As expectations are for trading to show year-on-year instruction growth, the record level of valuations and instructions in January is in line with such expectations.

“The Board reconfirms that the Company has had a good start to the calendar year and, with a number of key months ahead of us, its expectations for the financial year ending 30 April 2017 remain unchanged.”

The shares had been trading on Friday at an all-time high, the Daily Mail reported at the weekend.

Under the headline “Online agent claims to be mystified by its 80% rise”, the Mail’s Hugo Duncan wrote on Saturday: “What an incredible two months it has been for Purplebricks, the online estate agent backed by, among others, star fund manager Neil Woodford.

“Shares have soared in recent weeks, so much so that the board yesterday felt obliged to comment, with just an hour of trading to go before the stock market closed.”

He went on: “But what triggered the statement?

“Perhaps it was the rise in the share price from 104p at the start of December and 155.5p at the start of this week to an all-time high of 200p by early afternoon yesterday.

“Or perhaps it was a tweet from the company’s official Twitter account on Thursday, stating that ‘January has been a record-breaking month for valuations & instructions’.

“Either way, yesterday’s 3.30pm statement was enough to send the shares tumbling, with the stock closing the session down 4.9% or 9.5p at 183.5p. Not that investors will mind too much given the recent gains.

“The share price rally of almost 80% in the last two months has certainly been a boon for brothers Michael and Kenny Bruce who founded the company in 2014.

“Michael Bruce, who is chief executive, has seen the value of his stake jump by £34m since early December to £77.4m while his brother’s holding has gained £10.1m to £22.7m.

“Away from the shenanigans at Purplebricks, it was a subdued end to the week on stock markets…”

The Daily Mail article is here

The Purplebricks tweet is below

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Source:: Purplebricks tells Stock Exchange it does not know of any reason for share price rise